Required informationUse the following information for the Exercises below. (Static)[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsCurrent Year$ 31,80089,500112,50010, 700278,500$ 523,000$ 129,90098,500163, 500131, 100$ 523,0001 Year AgoLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityFor both the current year and one year ago, compute the following ratios:< Prev$ 35,62562,50082,5009,375255,000$ 445,000$ 75,250101, 500163,500104, 750NS2 Years Ago$ 51, 25083,500163, 50079, 250$ 445,000 $ 377,500of 9$ 37,80050, 20054,0005,000230,500$ 377,500Next > Required informationFor Year Ended December 31SalesCost of goods soldOther operating expensesCurrent Year$ 411, 225209,55012, 1009,525$ 673,500642, 400$31,100$ 1.90:. -. - == .......< Prev.$ 345,500134, 98013,3008,845Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per shareFor both the Current Year and 1 Year Ago, compute the following ratios:(1-a) Profit margin ratio.(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?(2) Total asset turnover.(3-a) Return on total assets.(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?S21 Year Agoof 9hp$ 532,000+++502,625$ 29, 375$ 1.80HelpNext >9 USSaM

Profit margin ratio = Net income/Sales Total asset turnover ratio = Sales/Average total assets Total…

For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31, 100 $ 1.90 1 Year Ago $ 345,500 134,980 13, 300 8,845 $ 532,000 502, 625 $ 29,375 $ 1.80 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?

For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31, 100 $ 1.90 1 Year Ago $ 345,500 134,980 13, 300 8,845 $ 532,000 502, 625 $ 29,375 $ 1.80 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Income statement data for Boone Company for two recent years ended December 31, are as follows: Previous Year Horizontal Analysis of the Income Statement Current Year $800,000 $640,000 Sales 664,200 540,000 Cost of goods sold $135,800 $100,000 Gross profit $39,100 $34,000 Selling expenses 35,670 29,000 Administrative expenses $74,770 $63,000 Total operating expenses Income before income tax $61,030 $37,000 Income tax expenses 24,400 14,800 Net income $36,630 $22,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Boone Company Comparative Income Statement For the Years Ended December 31 Current year Previous year Increase (Decrease) Increase (Decrease) Amount Amount Amount Percent Sales $800,000 $640,000 Cost of goods sold 664,200 540,000 Gross profit $135,800 $100,000 Selling expenses 39,100 34,000 Administrative 35,670 29,000…
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Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $660,000 $500,000 Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 Selling expenses $31,720 $26,000 Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 Income before income tax expense $44,980 $22,000 Income tax expenses 18,000 8,800 Net income $26,980 $13,200
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